30th August 2013
MRCF ATIP – State Aid Guidance
The maximum aid intensities that can be provided by the MRCF ATIP are defined by
various articles, as set out below, of the EU General Block Exemption Regulation1. The
appropriate limits are dependent upon the company size as well as the nature of the
activity being undertaken and the extent to which these activities relate to the definitions
within the regulation.
It is expected that most applications to this programme will be for R&D type activity.
Technical Feasibility Studies may also be supported where this materially progresses the
needs of the sector. The following table is an indication of maximum aid intensity,
against eligible costs, that is permitted within the scope of the relevant General Block
Exemption Regulation Articles.
Activity
type
R&D Prototype
development
R&D –
Component
development
Technical
Feasibility
Studies
Technical
Feasibility
Studies
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Activity
classification under
EU GBR
GBER Article 31 –
aid for research and
development projects
- Experimental
Development
(defined below)
GBER Article 31 –
aid for research and
development projects
– Industrial Research
(defined below)
GBER Article 32 Aid for technical
feasibility studies
(leading to Industrial
Research)
GBER Article 32 Aid for technical
feasibility studies
(leading to
Experimental
Small
Entity
Sole
Applica
nt
45%
Maximum Aid Intensity
Basic
Collaborati
Aid
ve2 project
Medium
Intensit
at greater
Entity
y
than 70/30
Sole
(Large
split inc.
Applicant
Entity)
one SME.3
35%
25%
+15% (eg.
Small 60%,
medium
50%, large
40%)
70%
60%
50%
+15% (eg.
Small
80%4,
medium
75%, large
65%)
75%
75%
65%
n/a
50%
50%
40%
n/a
Eligible Costs
Personnel cost;
Costs of
instruments and
equipment; Cost
of contractual
research,
technical
knowledge and
patents;
Additional
overheads; Other
operating
expenses.
(Defined fully
below.)
The costs of the
study.
The costs of the
study.
Commission Regulation EC No. 800/2008 declaring certain categories of aid compatible with the common
market in application of Articles 87 and 88 of the Treaty.
2
Sub-contracting is not considered for these purposes to be effective collaboration.
3
e.g. SME developer, with utility funding partner on construction project.
4
Max 80% permitted.
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Development)
It should be noted that this is indicative guidance and each defined project and applicant
company will be assessed and aid intensity limits confirmed with the European
Commission before any awards can be made. Therefore, whilst applicants are advised to
select the appropriate intensity limits for the purposes of the application, the actual
limits to be applied may be subject to change. The actual level of support need not be
the intensity maximum and will depend on a number of factors and will be reviewed on a
case by case basis based on the nature of the work and the applicant’s background. In
addition ultimate funding levels will be determined by the Carbon Trust on the basis of
value for money and additionality and it is likely in most cases to be below the State Aid
maximum. The combined total of an MRCF award and other public funding received will
have to respect the State Aid limits.
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Definitions
“Industrial research”:
the planned research or critical investigation aimed at the acquisition of new knowledge
and skills for developing new products, processes or services or for bringing about a significant improvement in existing
products, processes or services. It comprises the creation of components parts to complex systems, necessary for the
industrial research, with the exclusion of prototypes (note: prototypes are excluded only under the definition of ‘industrial
research’ but are eligible under the ‘experimental development’ category below).
“Experimental Development” shall mean the acquiring, combining, shaping and using existing scientific,
technological, business and other relevant knowledge and skills for the purpose of producing plans and arrangements or
designs for new, altered or improved products, processes or services. These may also include e.g. other activities aiming at
the conceptual definition, planning and documentation of new products, processes and services. The activities may comprise
producing drafts, drawings, plans and other documentation, provided that they are not intended for commercial use (it does
not include the routine or periodic changes made to products, production lines, manufacturing processes, existing services
and other operations in progress, even if such changes may represent improvements).
"Eligible costs", as defined under article 31 of the General Block Exemption Regulation, shall be the following:
(a) personnel costs (researchers, technicians and other supporting staff to the extent employed on the research project);
(b) costs of instruments and equipment to the extent and for the period used for the research project. If such instruments
and equipment are not used for their full life for the research project, only the depreciation costs corresponding to the life
of the research project, as calculated on the basis of good accounting practice, shall be considered as eligible;
(c) costs for buildings and land, to the extent and for the duration used for the research project. With regard to buildings,
only the depreciation costs corresponding to the life of the research project, as calculated on the basis of good accounting
practice shall be considered as eligible. For land, costs of commercial transfer or actually incurred capital costs shall be
eligible;
(d) cost of contractual research, technical knowledge and patents bought or licensed from outside sources at market prices,
where the transaction has been carried out at arm’s length and there is no element of collusion involved, as well as costs of
consultancy and equivalent services used exclusively for the research activity;
(e) additional overheads incurred directly as a result of the research project;
(f) other operating expenses, including costs of materials, supplies and similar products incurred directly as a result of the
research activity.
“SME”
Annex I : Definition of SME
Article 1
Enterprise
An enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This includes, in
particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or associations
regularly engaged in an economic activity.
Article 2
Staff headcount and financial thresholds determining enterprise categories
1. The category of micro, small and medium-sized enterprises (''SMEs'') is made up of enterprises which employ fewer than
250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not
exceeding EUR 43 million.
2. Within the SME category, a small enterprise is defined as an enterprise which employ fewer than 50 persons and whose
annual turnover and/or annual balance sheet total does not exceed EUR 10 million.
3. Within the SME category, a micro-enterprise is defined as an enterprise which employs fewer than 10 persons and whose
annual turnover and/or annual balance sheet total does not exceed EUR 2 million.
Article 3
Types of enterprise taken into consideration in calculating staff numbers and financial amounts
1. An "autonomous enterprise" is any enterprise which is not classified as a partner enterprise within the meaning of
paragraph 2 or as a linked enterprise within the meaning
of paragraph 3.
2. "Partner enterprises" are all enterprises which are not classified as linked enterprises within the meaning of paragraph 3
and between which there is the following relationship:
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an enterprise (upstream enterprise) holds, either solely or jointly with one or more linked enterprises within the meaning of
paragraph 3, 25 % or more of the capital or voting rights of another enterprise (downstream enterprise).However, an
enterprise may be ranked as autonomous, and thus as not having any partner enterprises, even if this 25 % threshold is
reached or exceeded by the following investors, provided that those investors are not linked, within the meaning of
paragraph 3, either individually or jointly to the enterprise in question:
(a) public investment corporations, venture capital companies, individuals or groups of individuals with a regular venture
capital investment activity who invest equity capital in unquoted businesses (business angels), provided the total investment
of those business angels in the same enterprise is less than EUR 1250000;
(b) universities or non-profit research centres;
(c) institutional investors, including regional development funds;
(d) autonomous local authorities with an annual budget of less than EUR 10 million and less than 5000 inhabitants.
3. "Linked enterprises" are enterprises which have any of the following relationships with each other:
(a) an enterprise has a majority of the shareholders' or members' voting rights in another enterprise;
(b) an enterprise has the right to appoint or remove a majority of the members of the administrative, management or
supervisory body of another enterprise;
(c) an enterprise has the right to exercise a dominant influence over another enterprise pursuant to a contract entered into
with that enterprise or to a provision in its
memorandum or articles of association;
(d) an enterprise, which is a shareholder in or member of another enterprise, controls alone, pursuant to an agreement with
other shareholders in or members of that enterprise, a majority of shareholders' or members' voting rights in that enterprise.
There is a presumption that no dominant influence exists if the investors listed in the second subparagraph of paragraph 2
are not involving themselves directly or indirectly in the management of the enterprise in question, without prejudice to
their rights as stakeholders.
Enterprises having any of the relationships described in the first subparagraph through one or more other enterprises, or any
one of the investors mentioned in paragraph 2, are also considered to be linked.
Enterprises which have one or other of such relationships through a natural person or group of natural persons acting jointly
are also considered linked enterprises if they engage in their activity or in part of their activity in the same relevant market
or in adjacent markets.
An "adjacent market" is considered to be the market for a product or service situated directly upstream or downstream of
the relevant market.
4. Except in the cases set out in paragraph 2, second subparagraph an enterprise cannot be considered an SME if 25 % or
more of the capital or voting rights are directly or indirectly controlled, jointly or individually, by one or more public bodies.
5. Enterprises may make a declaration of status as an autonomous enterprise, partner enterprise or linked enterprise,
including the data regarding the thresholds set out in Article 2. The declaration may be made even if the capital is spread in
such a way that it is not possible to determine exactly by whom it is held, in which case the enterprise may declare in good
faith that it can legitimately presume that it is not owned as to 25 % or more by one enterprise or jointly by enterprises
linked to one another. Such declarations are made without prejudice to the checks and investigations provided for by
national or Community rules.
Article 4
Data used for the staff headcount and the financial amounts and reference period
1. The data to apply to the headcount of staff and the financial amounts are those relating to the latest approved
accounting period and calculated on an annual basis. They are taken into account from the date of closure of the accounts.
The amount selected for the turnover is calculated excluding value added tax (VAT) and other indirect taxes.
2. Where, at the date of closure of the accounts, an enterprise finds that, on an annual basis, it has exceeded or fallen
below the headcount or financial thresholds stated in Article 2, this will not result in the loss or acquisition of the status of
medium-sized, small or micro-enterprise unless those thresholds are exceeded over two consecutive accounting periods.
3. In the case of newly-established enterprises whose accounts have not yet been approved, the data to apply is to be
derived from a bona fide estimate made in the course of the financial year.
Article 5
Staff headcount
The headcount corresponds to the number of annual work units (AWU), i.e. the number of persons who worked full-time
within the enterprise in question or on its behalf during the entire reference year under consideration. The work of persons
who have not worked the full year, the work of those who have worked part-time, regardless of duration, and the work of
seasonal workers are counted as fractions of AWU. The staff consists of:
(a) employees;
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(b) persons working for the enterprise being subordinated to it and deemed to be employees under national law;
(c) owner-managers;
(d) partners engaging in a regular activity in the enterprise and benefiting from financial advantages from the enterprise.
Apprentices or students engaged in vocational training with an apprenticeship or vocational training contract are not
included as staff. The duration of maternity or parental leaves is not counted.
Article 6
Establishing the data of an enterprise
1. In the case of an autonomous enterprise, the data, including the number of staff, are determined exclusively on the basis
of the accounts of that enterprise.
2. The data, including the headcount, of an enterprise having partner enterprises or linked enterprises are determined on
the basis of the accounts and other data of the enterprise or, where they exist, the consolidated accounts of the enterprise,
or the consolidated accounts in which the enterprise is included through consolidation. To the data referred to in the first
subparagraph are added the data of any partner enterprise of the enterprise in question situated immediately upstream or
downstream from it. Aggregation is proportional to the percentage interest in the capital or voting rights (whichever is
greater). In the case of cross-holdings, the greater percentage applies. To the data referred to in the first and second
subparagraph are added 100 % of the data of any enterprise, which is linked directly or indirectly to the enterprise in
question, where the data were not already included through consolidation in the accounts.
3. For the application of paragraph 2, the data of the partner enterprises of the enterprise in question are derived from
their accounts and their other data, consolidated if they exist. To these are added 100 % of the data of enterprises which
are linked to these partner enterprises, unless their accounts data are already included through consolidation. For the
application of the same paragraph 2, the data of the enterprises which are linked to the enterprise in question are to be
derived from their accounts and their other data, consolidated if they exist. To these are added, pro rata, the data of any
possible partner enterprise of that linked enterprise, situated immediately upstream or downstream from it, unless it has
already been included in the consolidated accounts with a percentage at least proportional to the percentage identified
under the second subparagraph of paragraph 2.
4. Where in the consolidated accounts no staff data appear for a given enterprise, staff figures are calculated by aggregating
proportionally the data from its partner enterprises and by adding the data from the enterprises to which the enterprise in
question is linked."
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